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Rules and Regulations
Federal Register Vol. 86, No. 236
Monday, December 13, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

DEPARTMENT OF AGRICULTURE
Farm Service Agency 7 CFR Parts 756 and 760
Commodity Credit Corporation 7 CFR Parts 1410, 1421, 1425, 1427, 1430, 1434, and 1435
Docket ID FSA20210003
RIN 0560AI59

Supplemental Dairy Margin Coverage Payment; Conservation Reserve Program; Dairy Indemnity Payment Program; Marketing Assistance Loans, Loan Deficiency Payments, and Sugar Loans; and Oriental Fruit Fly Program Commodity Credit Corporation CCC and Farm Service Agency FSA, Department of Agriculture USDA.
ACTION: Final rule.
AGENCY:

This rule amends the regulations for Dairy Margin Coverage DMC to allow supplemental DMC
payments to participating eligible dairy operations. DMC provides dairy producers with risk management coverage that pays producers when the difference between the price of milk and the cost of feed the margin falls below a certain level. Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds based upon a formula using 2019 actual milk marketings. Supplemental DMC
coverage is applicable to calendar years 2021, 2022, and 2023. Participating dairy operations with supplemental production may receive supplemental payments in addition to payments based on their established production history.
In addition, the rule amends the alfalfa hay calculation used in determining the average feed cost and actual dairy production margin. To end prolonged months of milk indemnity payments, the rule amends the regulations for
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Dairy Indemnity Payment Program DIPP to indemnify affected farmers for depopulating and permanently removing cows after discovery of chemical residues affecting the commercial marketing of milk for the applicable farm and likely affecting the marketability of cows for a lengthy duration. The rule also implements a new Oriental Fruit Fly OFF Program as authorized in the Consolidated Appropriations Act, 2019. In addition, the rule updates the existing Marketing Assistance Loans MAL and Loan Deficiency Payments LDP loan rates to be consistent with the Agriculture Improvement Act of 2018 the 2018
Farm Bill; the loan rates were already changed administratively because the loan rate changes were self-enacting.
This rule also amends the Conservation Reserve Program CRP regulations to remove two discretionary requirements.
DATES:
Effective: December 13, 2021.
Comment due date: For the OFF
Program only, we will consider comments on the Paperwork Reduction Act that we receive by: February 11, 2022.
For the OFF Program only, we invite you to submit comments on the information collection request. You may submit comments by going through the Federal eRulemaking Portal as follows:
Federal eRulemaking Portal: Go to https www.regulations.gov and search for Docket ID FSA20210003. Follow the online instructions for submitting comments.
You may also send comments to the Desk Officer for Agriculture, Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503. All comments received, including those received by mail, will be posted without change and publicly available on https
www.regulations.gov.

ADDRESSES:

For the Supplemental DMC Payment Program and DIPP, contact Douglas Kilgore; telephone: 202 7209011;
email: douglas.e.kilgore@usda.gov. For the MAL and LDP Programs, contact Shayla Watson; telephone: 202 690
2350; email: Shayla.watson@usda.gov.
For the OFF Program, contact Kimberly A. Kempel; telephone: 202 7200974;
or email: Kimberly.kempel@usda.gov.

FOR FURTHER INFORMATION CONTACT:

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For CRP, contact Jody Kenworthy;
telephone: 202 6905230; email:
jody.kenworthy@usda.gov. Persons with disabilities who require alternative means for communication should contact the USDA Target Center at 202
7202600 voice.
SUPPLEMENTARY INFORMATION:
Supplemental DMC Payments This rule is amending the DMC
regulations in 7 CFR part 1430 to establish supplemental payments to participating dairy operations. Subtitle D, section 1401, of Title I of the 2018
Farm Bill Pub. L. 115334 changes codified in 7 U.S.C. 90559057
authorizes DMC to provide a risk management program for dairy operations that pays producers when the difference between the price of milk and the cost of feed the margin falls below a certain dollar amount selected by the producer. Producers are eligible for catastrophic level margin protection based on a $4 margin and 95 percent production history coverage for their dairy operations by paying an annual administrative fee, and are also able to purchase greater coverage up to $9.50
margin on 5 to 95 percent of production history for an annual premium.
Section 761 of Subtitle B of Title VII
of Division N of the Consolidated Appropriations Act, 2021 Pub. L. 116
260 authorizes eligible participants in DMC, who have an approved DMC
contract, the opportunity to create a supplemental production history and receive supplemental payments whenever the average actual dairy production margin for a month is less than the coverage level threshold as selected by the dairy operation. Dairy operations eligible for supplemental coverage must have an approved DMC
contract for the applicable calendar year and have an existing DMC production history of less than 5 million pounds.
A significant number of current DMC
participants established a production history using marketings from 2011, 2012, and 2013. Since that time, many dairy operations have increased their milk production above their established production history by expanding the dairy herd or increasing milk production per cow.
Eligible DMC operations that have an increase in 2019 milk marketings from their established production history have the opportunity to receive
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